FTSE struggles

Property firms were a casualty of fears over rising interest rates today as the London market struggled to make headway.

An expected hike in interest rates from the Bank of England hit the sector in a market already hampered by the weekend’s security fears and a Friday afternoon sell-off on Wall Street.

The FTSE 100 Index extended earlier losses, slipping 27.3 points to 6580.6 by mid-morning.

Segro – formerly Slough Estates – led the fallers, dipping more than 2%, or 15p, to 610p. It was followed down by Hammerson, off 33p to 1401p, while Land Securities fell 40p to 1703p and British Land shed 28p to 1312p.

Retailers also continued to disappoint as the wet weather and weakening consumer confidence affected sentiment. Dixons owner DSG International fell by 1.6%, off 2.5p at 156.2p, while Next was 37p lower at 1972p.

On the risers board, energy companies continued to surge on the back of high oil prices as Royal Dutch Shell rose 21p to 2055p.

Fellow oil major BP was 2p higher at 605p, while gas explorer BG Group was up 8.5p at 830p.

Other firms on the front foot included drugs giant AstraZeneca, which moved 11p ahead at 2694p after an upgrade from Deutsche Bank.

In the telecoms sector, BT Group was an early riser amid thoughts that a prolonged auction of Virgin Media might prove beneficial for rivals, although the stock slipped 0.25p lower at 332.25p as the session progressed.

In the second tier, positive trading updates from casino company PartyGaming and construction firm Galliford Try caused shares in the pair to rise 2.5p and 9.5p to 32.25p and 168.25p respectively.

But Debenhams lost earlier gains after a newspaper report said the company had approached European retailers about a potential merger. Shares were down 0.5p to 129.25p.